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International Monetary Fund. Middle East and Central Asia Dept.
This 2018 Article IV Consultation highlights that the real GDP growth of Iran is expected to reach 4.3 percent in 2017/18. In the first half of 2017/18, recovery broadened to the non-oil sector, aided by supportive fiscal and monetary policies and a recovery in construction and services activity. The unemployment rate declined to 11.7 percent in the first half of 2017/18, but remained particularly high for youth and women. Inflation averaged 9.9 percent during the first 11 months of 2017/18 aided by moderation in food prices and stable administered prices. Real GDP growth is expected to ease to 4 percent in 2018/19 and is forecast to average 4.5 percent over the medium-term.
International Monetary Fund

levels, while ensuring adequate liquidity growth to support economic recovery; contain the commercial banks’ access to Central Bank of Iran’s (CBI) lending; and improve the banking system’s regulatory and supervisory framework. Structural reforms have focused on the proposed energy price reform. The authorities also plan to strengthen the soundness of the banking system. Staff recommendations A reduction of energy subsidies and a significant increase of non-oil revenue are needed to improve economic efficiency and achieve a more sustainable medium-term fiscal

International Monetary Fund. Middle East and Central Asia Dept.

. With this in mind, the CBI is determined to tighten monetary conditions: measured by CD rates issued by banks (with a return of 20 percent on rial-denominated CDs and 4 percent on exchange rate-linked but rial-denominated CDs), real interest rates are significantly positive. Additionally, CBI lending to banks—including paying depositors of Unlicensed Financial Institutions (UFIs), all closed since September 2017; assistance to distressed banks; and targeted schemes—is being contained, and the CBI is making emergency liquidity support to banks contingent on advance

International Monetary Fund

flexibility afforded by current arrangements. They considered that, at this stage, notes announcing rate moves and the quarterly CBI Monetary Bulletin, with extensive analyses and inflation projections, provided sufficient background to policy decisions. 16. Regarding liquidity operations and money markets, staff expressed concern about the rapid growth of CBI lending through its repo facility and discussed reforms in these areas . Outstanding repos reached ISK 92 billion in March 2002 (about 12 percent of projected annual GDP) and could be replacing regular sources of

International Monetary Fund

.4 -8.7 -6.8 -6.0 Money velocity (GDP/base money) 12.8 13.5 17.4 21.3 16.4 21.0 22.8 16.6 19.1 Broad money velocity (GDP/M3) 0.9 1.0 1.0 1.0 1.1 1.1 1.1 1.2 1.2 Multiplier (M3 / base money) 13.8 14.1 17.3 20.8 15.4 19.1 20.0 14.4 15.7 Sources: Central Bank of Iceland; and Fund staff estimates 1/ Foreign liabilities include fx deposits of domestic banks and the government. 2/ Net claims on banks is the difference between CBI's lending to banks and banks' holding of

International Monetary Fund

a step in the right direction. Going forward, access to the liquidity facility should require the use of collateral, possibly in the form of government participation paper or CBI paper. This would also help develop a secondary market. The staff also welcomes the recent establishment of an interbank market, which constitutes another important step to help improve liquidity management. Going forward, CBI lending to commercial banks for on-lending to the private sector should be discouraged, and the cost of providing assistance to enterprises should be borne by the

International Monetary Fund
The Islamic Republic of Iran’s 2009 Article IV Consultation highlights that real GDP growth has slowed following the decline in oil prices, the non-oil fiscal position has become tighter, and banks’ financial situation has weakened. The recent approval of an ambitious energy price reform by Parliament could bring significant medium- and long-term benefits by increasing economic efficiency, and would help improve the macroeconomic outlook. A reduction of energy subsidies and a significant increase of non-oil revenue are needed to improve economic efficiency and achieve a more sustainable medium-term fiscal position.
International Monetary Fund
This 2002 Article IV Consultation highlights that the economic developments in Iceland since early 2001 have been characterized by progress in the correction of some of the imbalances. As sentiment turned, the currency depreciated sharply and growth in economic activity decelerated from 5½ percent in 2000 to 3 percent in 2001—bringing it closer to its long-term sustainable pace. The balance of demand switched swiftly from consumption and other domestic expenditure to net exports and, as a result, the current account deficit fell to about 4½ percent of GDP.
International Monetary Fund

and consolidated financial system remain estimates for all periods after October 2008. Estimates of the new banks' balance sheets were updated periodically. 2/ NFA is defined by the TMU. In particular, foreign liabilities include fx deposits of DMBs and government. 3/ Net claims on banks is the difference between CBI's lending to banks and banks' holding of certificates of deposits. 4/ Base money includes currency in circulation and DMBs deposits at the central bank in krona. 5/ Net claims on the public sector of the consolidated system

International Monetary Fund
The paper describes the impressive economic progress made by Iceland in implementing program policies, stabilizing the exchange rate, and bringing inflation down, under a program supported by a Stand-By Arrangement (SBA). The authorities noted that key challenges are to reduce the high level of unemployment, lift capital controls, accelerate private sector debt restructuring, and strengthen financial sector supervision and regulation. The full implementation of the economic program will create favorable conditions for economic progress based on sustainable public finances, private enterprise, and free markets.